Forensic Analysis · Software & SaaS · as of Nov 9, 2026
Rum Group Inc. (RUM)
A forensic read on Rum Group Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
0.9
Distress distance
Clean
Earnings quality
6
Forensic signals
-77.3%
ROE
5.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Rum Group Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 0.9, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-244.4%
FY2023
Return on invested capital.Return on invested capital is -244.4% in the latest fiscal year.
+12.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +26% over the last 2 years to FY2025 (+12.5%/yr). The count is growing — 201.4M shares in FY2023, 254.7M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~12.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~21%.
24% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 24% of revenue in FY2025 — about $0.09 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 12.5% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
FCF ($74M)
FY2025
Shareholder returns.Returned $525M to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($74M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from negative to positive FY2024→FY2025 (FY2024 $-177.1M to FY2025 $+36.9M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
43d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 37 to 43 days FY2024→FY2025 (receivables +21% vs revenue +5%). Across FY2023–FY2025 the day count ran 25 → 37 → 43 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter. Deferred revenue grew +26% over the same period, which accounts for part of the balance but not for a day count that widened against the same quarters a year earlier. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 7 consecutive quarters (Dec 2024 +5, Mar 2025 +9, Jun 2025 +6, Sep 2025 +5, Dec 2025 +11, Mar 2026 +5, Jun 2026 +68 days). In the latest of them the receivable balance grew +295% against sales +61%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
Key fundamentals
Latest Revenue$100.6M
Revenue Growth YoY+5.4%
Revenue CAGR (2yr)+11.5%
Net Margin-81.3%
Free Cash Flow-$74.5M
Return on Equity-77.3%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Rum Group Inc.'s actual 10-K/10-Q/8-K filings?